Question: For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP? Machine X Machine Y Initial cost

For Machines X and Y shown, what is the difference between the EUAW for the HICP and the LICP?

Machine X Machine Y
Initial cost $559,000 $968,000
Life 4 6
Inflation (for costs and benefit increase) 7.0% p. y.
MARR 10% p. y. c. y.
Project life 14 years
First year estimated costs $195,650 $377,520
First year estimated benefits $402,480 $629,200
Salvage value of machine today $143,500 $172,400
Market value of machine today with 2 years of use $251,550 $435,600

Possible answers: $39,682,

$13,144,

$26,830, or

$96,055?

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